Inflation eases to 0.26 per cent

>> Thursday, April 9, 2009

Inflation declined to 0.26 per cent, the lowest ever in more than three decades, for the week ended March 28 mainly on account of food items and mineral products, fuelling expectations of rate cuts by the Reserve Bank.

The wholesale price-based index declined by 0.05 percentage points against 0.31 per cent in the previous week.

During the week, the minerals group declined by a whopping 11.8 per cent due to prices of fire clay going down 19 per cent, iron ore 14 per cent, and chromite two per cent.

Prices of some food items like tea have declined. But the fuel index remained unchanged at its previous week's level of 320.9.

However, manufactured items like imported edible oil were dearer by six per cent, benzene by 14 per cent, and enamelled copper wires by 9 per cent. - ET.